On January 1st of the current year, Buddy incorporated his sole proprietorship by transferring inventory, a building, and land to the new corporation, Elfin Wonderland, Inc. in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and tax-adjusted bases. Inventory Building Land Total FMV $ 100,000 200,000 200,000 Adjusted basis $ 50,000 350.000 150,000 $ 500,000 $ 550,000 The fair market value of the corporation's stock received in the exchange was $500,000. The transaction met the requirements to be tax-deferred under 351. [a.] What amount of net gain or loss does Buddy realize on the transfer of the property to his corporation? [b.] What amount of gain or loss does Buddy recognize on the transfer of the property to his corporation? [c.] What is the corporation's adjusted basis in each of the assets received in the exchange? [d.] What is Buddy's basis in the new corporation's stock?

On January 1st of the current year, Buddy incorporated his sole proprietorship by transferring inventory, a building, and land to the new corporation, Elfin Wonderland. Inc. in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and tax-adjusted bases. The fair market value of the corporation's stock received in the exchange was $500.000. The transaction met the requirements to be tax-deferred under $351. [a.] What amount of net gain or loss does Buddy realize on the transfer of the property to his corporation? [b.] What amount of gain or loss does Buddy recognize on the transfer of the property to his corporation? [c.) What is the corporation's adjusted basis in each of the assets received in the exchange? [d.) What is Buddy's basis in the new corporation's stock